Bombardier CSeries engine failure was in low-pressure turbine-UBS

TORONTO, June 6 (Reuters) - Canada's Bombardier Inc
said that the engine failure on its CSeries test plane
last week occurred in the low-pressure turbine and that the
airframe on the jet had been damaged, according to a UBS
research note.

Bombardier downplayed the impact of the engine failure to
the test schedule of the $4.4 billion jetliner program, UBS
said, and shares, which fell after the incident last week, rose
nearly 2 percent on Friday to C$3.80.

"While root cause analysis is ongoing, Bombardier emphasized
that the failure was unrelated to the gearbox, and also
suggested that a manufacturing defect, rather than a design
flaw, may have been the cause," UBS analyst, Darryl Genovesi,
wrote in a client note late on Thursday.

The May 29 engine failure initially sparked fears of further
delays for Bombardier's CSeries program, already 18 to 24 months
behind schedule, and sent Bombardier's shares down 3.7 percent
last Friday. The plane is due to enter service in the second
half of next year.

The UBS report supports comments made on Thursday by Pratt &
Whitney parent United Technologies Corp Chief Financial
Officer Greg Hayes. He said the failure did not relate to the
engine's signature gearing system, known as the Geared Turbofan.

A problem with the gearbox would have had broader
repercussions as it is a component being used not only on the
CSeries but other aircraft such as Airbus' forthcoming
A320neo.

Asked about the low-pressure turbine, located at the rear of
the engine, Pratt & Whitney spokesman Jay DeFrank declined on
Friday to elaborate on the technical details of the incident,
beyond confirming that the gear system was not involved.

In his report, Genovesi said the engine that failed "was
known to have problems" and that Bombardier had considered
sending it back to Pratt, but instead repaired it at its own
facilities.

The failure, which took place during stationary maintenance
testing, occurred after the repairs, UBS said, adding that a
root cause was expected by the end of the week.
(Reporting by Solarina Ho in Toronto, additional reporting by
Lewis Krauskopf in New York; editing by Andrew Hay)